A federal jury has sided with Insulet, which claimed that the South Korea-based diabetes tech company EOFlow had stolen trade secrets related to its wearable insulin pump, in a case that complicated a major medtech acquisition late last year.
The Massachusetts district court awarded Insulet a total of $452 million, including $170 million in compensation plus $282 million in punitive damages. However, in a statement, Insulet said “EOFlow’s ability to satisfy this damage award is not known with certainty.”
Insulet’s complaint was first filed in August 2023, describing EOFlow’s patch-based, tubeless insulin pump as “virtually indistinguishable” from its own Omnipod system, with certain components being “entirely interchangeable.”
The company also claimed that EOFlow hired several of its former executives and employees, including some defendants named in the suit, before making significant changes to the design of its original EOPatch product.
The lawsuit came just months after Medtronic announced plans in May 2023 to acquire EOFlow for a total of 971 billion won, or about $738 million U.S., as part of a strategy to integrate the EOPatch with its own continuous glucose monitors and meal-detecting insulin dosing algorithms.
But by that October, the Massachusetts court had issued a preliminary injunction to stop EOFlow from manufacturing or selling any products linked to Insulet’s tech. Medtronic ultimately called off its deal last December—nearly one year ago to the day—saying that EOFlow had breached the terms of the acquisition.
“[B]oth companies tried for the last few weeks to find a solution but couldn't due to a wide gap between the two companies, given Medtronic's view of uncertainties,” EOFlow CEO Jesse Kim said in a statement at the time. “However, the interest from both parties remains high and Medtronic just let us know that they would closely follow the progress on the legal proceedings currently ongoing with Insulet… while the company is facing a legal challenge, the fact that we are one of the only two entirely disposable wearable insulin delivery solutions in the world doesn't change.”
EOFlow previously submitted a 510(k) clearance application to the FDA in December 2022, but the device has not yet received a U.S. green light; the EOPatch has collected regulatory approvals in Europe as well as Indonesia and the United Arab Emirates, according to the company.
“We are extremely pleased with the jury’s verdict, which validates our commitment to protecting our technology and defending our intellectual property against misappropriation and infringement,” said Insulet President and CEO Jim Hollingshead. “We will not only enforce our patents but also zealously protect our valuable trade secrets, in which we’ve invested heavily to improve the lives of people with diabetes.”